Gold Miners' Q3'22 Fundamentals

Adam Hamilton profile picture
Adam Hamilton
11.09K Followers

Summary

  • The major gold miners just reported a weaker quarter. Their collective production fell despite overall global mined gold output rising, as they continue to struggle with depletion.
  • Less gold mined boosted unit costs proportionally, which were further exacerbated by inflationary pressures on inputs. That with lower average gold slashed earnings to their lowest levels in several years.
  • Nevertheless the major gold miners still continued to generate solid profits and operating cash flows. They are forecasting lower all-in sustaining costs in coming quarters, which will boost earnings.

Excavator loading dumper truck on mining site

guvendemir

The battered major gold miners’ stocks rocketed higher with their metal in recent weeks, showing signs of life. That vertical breakout started to rekindle traders’ interest in this left-for-dead contrarian sector. Gold stocks’ upside potential in coming months partially depends on how these companies

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This article was written by

Adam Hamilton profile picture
11.09K Followers
A lifelong student of the markets, speculator, and investor, decades of experience have forged Adam into a hardcore contrarian. He believes in buying low when others are afraid, then later selling high when others are brave. He founded the financial-market research company Zeal LLC, and continues to write acclaimed weekly and monthly subscription newsletters.

Disclosure: I/we have a beneficial long position in the shares of AG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I own extensive long positions in gold stocks and silver stocks which have been recommended to our newsletter subscribers. They include AEM, AG, and SSRM.

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